Okta Inc (OKTA)
Cash ratio
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 409,000 | 334,000 | 264,000 | 260,000 | 434,607 |
| Short-term investments | US$ in thousands | 2,114,000 | 1,868,000 | 2,316,000 | 2,242,000 | 2,152,580 |
| Total current liabilities | US$ in thousands | 2,523,000 | 1,782,000 | 1,465,000 | 1,243,000 | 1,545,610 |
| Cash ratio | 1.00 | 1.24 | 1.76 | 2.01 | 1.67 |
January 31, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($409,000K
+ $2,114,000K)
÷ $2,523,000K
= 1.00
The cash ratio of Okta Inc. over the specified period demonstrates fluctuations with an overall downward trend from January 31, 2021, to January 31, 2025.
On January 31, 2021, the cash ratio stood at 1.67, indicating that the company held cash and cash equivalents exceeding its current liabilities, providing a strong liquidity position. This ratio increased to 2.01 by January 31, 2022, suggesting an improvement in liquidity, with cash holdings surpassing current liabilities by a substantial margin.
Subsequently, the ratio declined to 1.76 on January 31, 2023, reflecting a slight reduction in immediate liquidity but still maintaining a comfortable level where cash and equivalents cover current liabilities more than once. The downward movement continued with a notable decrease to 1.24 on January 31, 2024, indicating a reduction in liquidity cushion, although cash and equivalents still exceed current liabilities.
By January 31, 2025, the cash ratio reached 1.00, signifying that cash and cash equivalents are exactly equal to current liabilities. While this presents a balanced liquidity position, it indicates less cushion for unforeseen short-term obligations compared to prior years.
Overall, the trend suggests a gradual decline in Okta Inc.'s cash ratio over the four-year period, transitioning from a position of surplus liquidity to a more balanced stance. This shift may reflect operational changes, strategic asset reallocation, or planning for increased expenditures, but remains within a range that typically supports a stable short-term liquidity outlook.
Peer comparison
Jan 31, 2025